There has never been a better time to start your own property management company in Texas than right now.
As the economy continues to worsen, more and more people are seeing the value of investing in real estate which is great news if you are in the property management business.
Most property owners not only don't have a real estate license but are far too busy to handle their own property management needs.
This is why they usually turn to real estate professionals, such as a certified property manager in Texas to provide such services.
You can take advantage of that and become a property manager in Texas. Real estate commission rates can be high enough to make a decent living or turn your property management company into a very lucrative business.
However, there are a few things you need before you can even think of running your own property management company and one of these is a Texas real estate broker license.
While a couple of states do not require a property manager to hold a real estate license, real estate management laws in Texas are quite clear.
If you are ready to become a property manager, read all about Texas real estate licenses, property management firms, and much more in the following article.
What Is a Property Manager?
A property manager is a link between a property owner and the tenants.
They provide essential property management services that the owner is either unqualified or too busy to manage.
While it is not unusual to have property managers that oversee small properties, the true value of a property manager in Texas is when managing large residential or commercial buildings that need an entire team of real estate professionals to handle.
Property managers help to free the landlord from the need to worry about day to day activities of running a property and only rely on getting regular updates from the property manager.
Just like a real estate broker, there are a few basic requirements that are needed before one can become a certified property manager in Texas, and these are:
- All property managers need to be aged 18 or older
- You need to be a legal and permanent resident of the US or hold a US citizenship
- It is essential to have at least a high school diploma or GED to be allowed to apply for a Texas real estate license
Compared to property managers in other states, the average salary of a property manager in Texas is above average, sitting at around $52,005 per year.
However, this has the potential to be much higher depending on the commission the property managers charge.
Property managers that understand the industry a lot more and make use of technology, such as Propertyware are also able to make a lot more money.
The specifics of what a property manager does on a day-to-day basis vary drastically from one property to the next depending on the business model of the property management company and the needs of the property owners.
A property manager can, for example, work as a real estate sales agent (if they have a real estate salesperson license) by helping the owners find new tenants, or in other circumstances, they may act as a building superintendent by overseeing the maintenance and repairs in a building.
However, for the most part, the duties of a property manager can be divided into four categories, which are:
- Setting a budget for the running of the property
- Filling vacant units
- Handling maintenance requests
- Setting and collecting rent
Property Manager Responsibilities
To fulfill these duties and earn their Texas real estate commission, a property manager has to take care of the following responsibilities:
- Ensure proper maintenance and repairs of all issues to do with the property
- Advice tenants on the rules and regulations set by either the owner or the city officials
- Make sure that no health violations are conducted on the property
- Collect rents and deposits on behalf of the owner
- Manage moving in, moving out, and eviction procedures
- Respond to tenant requests
- Give feedback to the owner regarding any issues with the property
- Screen tenants for evidence of past criminal charges
- Leasing property and managing lease agreements
- Arranging the viewing of apartments by prospective tenants
To become a property manager, you will need some skills that are a lot similar to those possessed by successful sales agents. This means you have to have the following:
- Marketing instincts to help you fill out vacant units as quickly as possible even during a bad financial period, such as the one we are going through at the moment
- Patience and flexibility are key attributes when dealing with people, especially in stressful situations, such as having to evict a tenant for failure to pay rent
- You have to be able to communicate well with both the tenants and the property owners to avoid any misinterpretations. Strong communication skills also come in very handy when dealing with difficult tenants
- Money management skills will also prove to be useful because of the many things that are needed to keep the property running smoothly
- If the property is very large or has many different units, some basic accounting will also be necessary when evaluating how well the property is doing.
Apart from having the required skillset, obtaining some qualifications from professional organizations is also essential to a rewarding career and long-term success.
Therefore, to become a property manager you need the following educational and licensing requirements:
Education Requirements for Real Estate Managers
With a basic high school diploma, you can take the first steps to become a property manager in Texas.
However, this is a tough industry to break into and even tougher to dominate.
Many property managers that have had a rewarding career in the industry have done so based on mutual trust between them and their clients.
Having something more than just a high school diploma or GED will be essential to building that kind of trust, which is why getting a bachelor's degree is a great idea. If you are busy, you can enroll in a few classes at your own pace.
Property Manager Certifications
Licenses, such as the real estate salesperson license are often issued at a state level, whereas certification is usually from a national association.
After getting your license from the Texas department you will need to start working on the following certifications:
- National Apartment Leasing Professional (NALP)
- Certified Apartment Managers (CAM)
- Certified Property Manager (CPM)
- Master Property Manager (MPM)
From acting as a leasing agent to collecting rent every month, the duties of a property manager are wide-ranging.
However, it can be a rewarding career and one that you can try out as well. Make sure you meet all the licensing requirements and begin your career as a property manager.
What Are the Best Practices for a Property Management Company?
The following are the qualities that separate different companies in the real estate industry:
- Knowledge of Texas real estate laws
- Technical skills
- Job enthusiasm
- Efficiency when dealing with issues
What Percentage Do Most Property Managers in Texas Take?
The monthly management fee that is charged by most property managers as their Texas real estate commission is usually around 8-10%.
However, the more the reputation and experience the more a property manager can charge.
What Are the Three Main Duties of Property Management Companies?
Property management companies oversee a wide range of duties daily but these can be boiled down to three main activities, which are:
- Filling vacant units and potentially setting the budget for the property
- Handling maintenance requests from tenants
- Rental collection